Foreigner's Finances

In the last few years, there has been a lot of talk about PPI mis-selling, which is where customers were sold PPI as part of UK credit card or loan packages without them being aware of it. However, there are situations and circumstances in which payment protection insurance (PPI) can be really useful, so you shouldn’t let all the fuss about PPI mis-selling put you off this financial product if you actually need it.

What is PPI? 

A lot of people may have heard of PPI in the last few years without having any idea what it is. Quite simply, it is a type of insurance which covers your repayments on loans, credit cards and other forms of lending if you can’t make them for certain reasons. These reasons include serious illness or injury, as well as some other reasons (depending on the PPI provider) why you aren’t able to work and earn money to pay your debts.

If you do your research into PPI and make sure you know exactly what type of cover you are getting when you take out a loan or credit card, there is no danger that you will be a victim of PPI mis-selling. Companies are also not allowed to bundle PPI in with financial products anymore, at least not without telling you first.

When can PPI be useful?

There are many things to think about before taking out payment protection insurance. For example:

• If you have no other cover. You should find out if you have any other cover for loan and credit card repayments in the event that you can’t work. Life insurance, critical illness insurance and income protection insurance can all cover loan repayments, as can sickness or redundancy benefits offered by your employer. If you don’t have any cover, PPI could be the right choice for you the next time you apply for a credit card.

• If you only have insurance for illness. Even if you have illness insurance, this is not likely to cover employment as well. This is when PPI really comes into its own, as it covers many different types of unemployment. However, you should check whether a particular policy covers dismissal or self-employment before taking it out.

• You don’t have any savings to fall back on. Those without savings can really benefit from PPI, as it will act as a safety net in case the worst happens. Even if you have small sum in savings, this won’t be enough to cover you in the long-term, and you could be left without a penny for emergencies.

Psychological traits underlie purchasing decisions. By leveraging the little subconscious rules that govern your shopping behavior online with ecommerce software, you can boost sales. Here is a list of 6 traits to get you started:

1. We Seek Advice

Did you start your business without talking to others about legal issues, purchasing and shipping challenges, and whether a business incorporation or a sole proprietorship is the way to go? Probably not. The same goes for buying products and services. When we are unsure about our purchases, we look to others for confirmation. What are my friends and family members doing? What have they done in the past? Your customers are asking themselves these subconscious questions to overcome insecurities about a purchase. You can take advantage of this by allowing shoppers to share their purchases on social media sites.

2. We Trust Specialists

Authority has a massive amount of power in social commerce. Product reviews on YouTube, blogs, Twitter, and other social media sites feature in more than 75% of purchase decisions online. When experts create these reviews, they are even more persuasive for your potential customers. Linking to reviews for your products and store on other web platforms will help you use this psychological trait.

3. Less is more

When shoppers think a product or offer is scarce, the fear of missing out on a deal makes them assign a higher value to that product. This is the psychological principle that makes one-time offers and exclusive deals so enticing. Try a sale that shoppers can only redeem through Facebook to take advantage of this principle.

4. The Power of the Network

Consumers tend to copy the actions of the people they like or follow. The implicit trust and affinity that we share with our connections on social networks makes us more likely to mimic their purchases. We are also more likely to share the deals we have found with our own followers.

5. Shoppers are Loyal

Do not underestimate the power of loyalty. Consumers tend to choose products or providers that align with our past actions whenever we are unsure about purchase decisions. People love consistency. Our online satisfaction makes us loyal to certain brands, and this fuels our future shopping patterns. You can take advantage of this by creating a distinct brand with ecommerce software and pleasing your customers. You can also align your brand with another provider that has pleased your customers in the past. If you do this, chances are that shoppers will come back for more.

6. We Love Fairness

Shoppers love to pay it forward. They have an innate drive to repay favors that have been done for us and to balance the scales of fairness in our day to day lives. This means that online customers will want to share the deals they find in your store with shoppers they know. You can leverage this by sharing updates and exclusive deals within your social network and allowing your customers share them as well.

Freelancing while seeing the world is a great way to make a living.  You get the pleasure of traveling and living abroad and seeing the sites.  Plus, if you live or visit an area of the world with a much lower cost of living, you don’t have to work as hard as you do when living in the United States. . .or Japan.

However, especially in the beginning, you may have times where your freelance clients aren’t timely with their payments.  If you haven’t yet had time to build up an ample emergency fund, a large late payment can put you in a tight position.  Here’s what to do in that case:

1.  Skimp through on what you have.  Put off buying groceries or visiting attractions.  Put off all non-essential spending.  Eat what you have in your house, even if it isn’t what you would prefer.  See if you have kind friends who will invite you over for a bite to eat.

2.  Pick up an extra job.  If you’re able, pick up a quick freelance job to help you earn money to tide you over until you get the money you’re waiting on.

3.  Get a short term loan.  If you have rent or bills that are coming due and you can’t put them off, consider getting a cash loan until your income comes in.  Thanks to responsible lending, you can learn all the terms of your loan.   Make sure you pay it off as quickly as possible so you don’t have to pay a large amount in interest.

4.  Borrow from friends or family.  If you feel comfortable doing this, you can also borrow from friends or family.  Just make sure to pay back the money as soon as you get your payment.

Being short on cash thanks to a slow paying client is no fun.  Once you make it through this bump in your freelance career, make sure to lower your expenses so you can increase your emergency fund.  Then, the next time a client pays slowly (and it will happen again), you’ll have your own built in cushion to see you through until you receive payment.

While there is nothing much you can do to reverse back time and start from when you were 18, there is a very important thing you should pay attention to; teach your kids how to manage their money right! If the financial conditions are bad right now, they can get worse by the time your kids are old enough to take up their own responsibility. It helps to get the right advice when it comes to debt consolidation and management. The demographics today indicate that kids today often need financial assistance from their parents in paying off their debts or moving out.

Therefore, it is very important to teach your kids the importance of financial management and ways to stay away from debt as much as possible.

Here are some ways you can make your kids realize how important debt management is:

1. Discuss Money with Your Kids

It is not just very important, but as a parent it is also your responsibility to teach your kids the value of money. Although every parent wants to get their kids whatever they ask for, it is very important to tell them what is affordable to you and what isn’t. Talking about money with your kids can make them aware of the financial problems that exist in the real world.

2. Teach Them Saving

From an early age, teach your kids how to save money as much as possible. Start giving them some amount of money and tell them to save from it. Much better is to provide them with a savings account from an early age so that they can learn saving methods in a systemically manner. Provide them with tips and tidbits that can help them in increasing their savings.

3. Give Them Financial Independence

Encourage your kids to become financially independent, even when they are living with you. Ask them to indulge in part time or summer jobs and save the money they earn so that it can be used in the future. Teach them to bear their own expenses from an early age.

4. Education Programs

There are several financial education programs that are offered to teach people about financial management. These programs are very helpful in teaching you and your kids how you can stay away from debt when you are earning. It helps to get the right advice when it comes to debt consolidation and money management at the right time.

5. Set a Budget

Always provide a spending budget to your kids so that they know their limits. Set up an amount you will give your kids each month as their allowance and set some conditions to this amount such as saving a sum in the end or spending towards a good cause. Teach them how to create a budget and stay on it throughout the month.

6. Set up a College Fund

In order to keep your child away from the student debt trap, set up a college fund for them right from their birth and start putting money away. You can loan this money to your kid when it’s time for them to go to college, except you can do that at friendlier credit terms. While these savings can be small for you spread over the years, they can go a long way in keeping your kids debt free.

7. Show Them Appreciation

When your kids make a good financial decision, appreciate them regarding their decision. When they will see your pride in their skills, they will automatically feel good towards it and will aim to take it further so that they can earn your appreciation again.

8. Make a Journal

Teach your kids to make a journal about their finances where they can keep record of their good and bad decisions so that they remember, and learn from them in the future. Having a record of their financial management can help your kids in the future.

9. Point Out Mistakes in a Positive Manner

Making mistakes and learning from them is human. Don’t get harsh with your kids when they make a mistake. Instead, explain calmly what they have done wrong, how it can impact their finances and how the mistake could have been avoided. If you want your kid to learn, you should be ready to accept mistakes.

10. Monitor Their Accounts Initially

Even after your kids are financially independent, keep a track on their accounts for some time initially. Keeping an eye on their spending pattern can help you understand whether your kids have money management skills or not.

By teaching your children the importance of money management, you can ensure that they stay away from debt in their lives. This can not only make them financially more stable but can also keep them away from unnecessary stress and tension. Debt is like Hydra, the multiple headed monster; once it starts, it can accumulate fast while it can get more and more difficult to pay it off. By teaching your kids the value of money today, you can give them a better tomorrow!

Author’s Bio:

This article is composed by Elaine McPartland who is associated with “Consolidated Credit” as their community writer. She has an expertise in writing articles related to debt consolidation and how to pay off debts easily and smoothly. You can add her at her google+ profile. 

Nowadays it seems as if the taxman has got his finger into just about every pie that’s going, so you may well wonder how he views the cash that you win playing online and offline casino games.

In fact the answer to this is very straight forward. In the UK gambling winnings, whether they are made at a casino such as Jackpot City, on the national lottery, or at the tracks on horseracing, are not subject to tax.

There is a complication though, and that is in the case of professional gamblers. As professional gamblers make their living through gambling, which means that their day job is gambling, then you might expect that they have to pay taxes on their winnings, and that they ought to be able to offset any losses against profits, just as a self employed tradesman or the owner of a limited company.

However HM Revenues and customs cites on their website case law that dates back to 1925. The case was Graham versus Green and involved a man who made his living entirely from betting on horses at the starting prices.

It had been argued that he should be taxed in the same way as a bookmaker; however the counter argument was that he was not performing the same function as a bookmaker. Rather he was behaving in the same vein as a skilled poker player who plays poker every day. The reason that he makes money is that he is more skilful than the people he plays with, and that is not the same thing as operating as a sole trader and profiting from his trade.

On the other hand, if he used his prowess at gambling in other ways, for instance teaching other people how to be successful gamblers, selling gambling tips, or even earning fees for appearing in the media, then those earnings would be subject to tax.

Image by Viri G on Flickr.